Friday, October 25, 2013

Pricing in a Recession

To be an entrepreneur you have to be willing to take risks. A few weeks back I took a risky path by raising my prices to what would be the minimum I figure I should be working for in a decent economy. As a result I have not been half as busy as I was before the price change. I am confident that my work in my specialties are as good or better that other photographers in my area. Yesterday I done the research. It does not appear that my competition has changed there pricing structure. Therefore, I have come to the conclusion that "I goofed it". And, if I want to survive I had better make get back in line with today's market. So, I did.

The pricing structure that I now work under, like my competition, is not a pricing structure that allows us to put money aside to make repairs, or buy new equipment. It pays our personal bills, but not the bills that allow a business to make a profit. In other words, we are not in a depression, but we are most certainly still in a recession.

Lesson learned.

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